The interpreters and their families face retribution attacks from militants if they stay in their home country but personal appeals from senior army officers that rules be relaxed had fallen on deaf ears in Whitehall until now.

Today a spokeswoman said that the Government was “extremely grateful” for the services of local staff in Iraq and took their security “very seriously”.

“We recognise that there are concerns about the safety of former employees,” she said. “Government keeps all such issues under review and we will now look again at the assistance we provide.

“This is a genuinely complex issue and we welcome further discussion but we need to consider all the options very carefully.”

But the shift could open the floodgates for up to 15,000 Iraqis understood to have worked for the British armed forces since 2003 who might consider applying for asylum.

One letter from a locally employee requesting help - accompanied by a glowing tribute from a British commanding officer - reached former Downing Street foreign policy adviser Nick Banner. Mr Banner replied that the man was not eligible for asylum and advised him to apply to another country.

Last month Denmark granted asylum to 60 Iraqi staff and their families after it withdrew troops from Iraq. The US has said it will take in 7,000 Iraqis this year, including former employees.

But the UK has apparently refused to give special treatment so far. Shadow foreign secretary William Hague said abandoning the interpreters was “unacceptable”.

"As a matter of honour, we have to look after them one way or the other if they have a genuine case.”

Shadow immigration minister Damian Green said: “Anyone whose life is at risk because of work they have done for Britain must have a strong case to be granted asylum.

“Each case would have to be looked at on its merits but, just because the Government has reduced the asylum and immigration system to chaos, does not mean that we should lose sight of our proper humanitarian instincts.”